Moving Away from Traditional Transaction-Based Financial Information Essay

Moving Away from Traditional Transaction-Based Financial Information to Technologically Based Non-Financial Information - Essay Example Many businesses have in the recent times shifted their focus from using the traditional transaction-based financial information towards using technologically based non-financial information (Agresti, 2002). This has been largely due to the fact that the traditional approaches usually limit themselves through the definition of their cost behaviors in the terms of their production along with sales level (Burns and Baldvinsdottir, 2007). The traditional methods were mostly utilized for the purposes of giving reports when the valuations of the items in their income statements and balance sheets (Zhou, 2012). The method also had so many restrictions as the statements prepared were supposed to comply with the GAAP principles. As a result of being outdated in their practices the governing body of the management discipline brought more technological advances that would have helped in resolving the issue (Cooper, 2009). Additionally, in the recent past there has been a great shift by the mana gements of businesses across the globe towards the use of technologically based non-financial pieces of information (Burns and Baldvinsdottir, 2007). ... These two types of change within the management field are evident simultaneously across many businesses along with organizations (Burns and Baldvinsdottir, 2007). Reports indicate that such an occurrence might occur because both of these changes may be subjected to the same types of normative pressures though they are basically mutually independent (Agresti, 2002). The management accounting profession has in the modern world changed their views on various aspects that affect their operations. For instance, less emphasis has recently been placed on the acquisition of technical knowledge along with the traditional skills of doing business (Burns and Baldvinsdottir, 2007). The new work of the management accountant thus relies on his ability of interpreting non-financial information for the benefit of a business entity or organization (O’Sullivan, 2010). This has made the management accountants new work to be described as involving the offering of consultancy services to the inter nal operations of a business. Change within the management profession has also been driven by the fact that the accountants are currently being involved in the support of decisions and offering of professional advice to the organization (Agresti, 2002). The advice provided is on the strategic along with operational issues of an organization and the application of special technical skills for the benefit of the organization (Cooper, 2009). The issue of leadership is directly related to the management profession and this implies that the methods applied by the professionals in the field have to change. The change should therefore be aimed at providing an increase in the collaborations beyond the financing option and working in teams that have multiple purposes in a